CANADA STOCKS-Energy-share selloff drags TSX to 4-1/2-month low

Reuters Staff

3 Min Read

* TSX down 91.29 points, or 0.63 percent, at 14,485.16
* Seven of 10 main index sectors fall
* Suncor, Canadian Natural among leading decliners
By John Tilak
TORONTO, Oct 8 (Reuters) - Canada's main stock index dropped
to a 4-1/2-month low on Wednesday as concerns that the global
economic recovery was losing steam and worries about a weak
outlook for oil demand weighed on shares of energy producers.
Investors were also digesting a report on Tuesday from the
International Monetary Fund that showed the agency cutting its
global economic growth forecasts for the third time this year.
Energy shares have been weakening since June, when the price
of oil began a slump over concerns about weak demand and ample
supply. The energy sector tumbled 2 percent on Wednesday and had
the biggest negative influence on the market.
The benchmark TSX has been trading in negative territory in
12 of the last 14 sessions. It is down more than 7 percent since
hitting a record high last month.
"We're going to see volatility increase and pressure on the
market for the remainder of the year," said Michael Sprung,
president of Sprung Investment Management.
"As the stocks come down, it's providing investors with good
opportunities to improve the quality of their portfolios," he
added.
Sprung sees value in the energy sector but recommends that
investors take a more cautious and selective approach with the
mining industry.
The Toronto Stock Exchange's S&P/TSX composite index
was down 91.29 points, or 0.63 percent, at 14,485.16.
Seven of the 10 main sectors on the index were in the red.
Shares of energy producers dropped 2.6 percent, with the
U.S. crude oil price down 2 percent. Suncor Energy Inc
tumbled 2.6 percent to C$37.55, and Canadian Natural
Resources Ltd lost 2.7 percent to C$38.91.
The industrial group shed 1.2 percent, with Canadian Pacific
Railway Ltd giving back 2.2 percent to C$226.40.
But financials, the index's most heavily weighted sector,
advanced 0.2 percent. Royal Bank of Canada gained 0.8
percent to C$80.31, and Bank of Montreal climbed 0.6
percent to C$81.88.
(Editing by James Dalgleish)